Food services suffer in wake of fed cuts
DELMAR — Facing funding cuts and increased costs, Bethlehem Central School District officials announced further reductions to the 2025–26 proposed budget at the March 19 Board of Education meeting.
Chief Business and Financial Officer John McPhillips reported several spending reductions that will decrease the proposed budget by nearly $900,000 from the previous version, bringing it to $116,623,936. The resulting gap between revenue and expenditures has been reduced to $820,100, with a proposed tax levy increase of 1.12 percent.
Deputy Superintendent David Hurst said the reductions were largely achieved through staff eliminations due to retirements.
McPhillips said the budget represents a $2.6 million, or 2.27 percent, increase over the current year. He cited higher salaries and benefits required by the district’s collective bargaining agreement with its union, along with general inflation.
He stated the district cannot keep pace with inflationary pressures. Over the past four years, inflation has compounded at 21 percent, McPhillips said, while the state’s tax cap allows for only a 2 percent annual increase — or 8 percent compounded — over the same period.
McPhillips also predicted a structural imbalance in the district’s budget over the next few years, noting that additional fund balance money will likely be needed to balance future budgets.
While he said it is too early to determine the exact impact on district taxpayers, based on current information, he estimated a 1.35 percent tax increase — or $30 per $100,000 of assessed property value — for Bethlehem residents, and a 1.64 percent decrease — or $37 per $100,000 — for New Scotland residents. Final tax rates cannot be set until late August, once property assessments are finalized.
Future funding of district food services uncertain
As part of the budget process, the board also heard from Food Service Director Claire Groudine, who projected nearly $1.9 million in revenue for the district’s food service program — about $600,000 of which comes from state and federal funding. However, projected costs of nearly $2 million leave a significant shortfall for the 2025–26 school year.
McPhillips said the district plans to transfer funds to cover the food service deficit.
Groudine outlined several food-related programs supported at all grade levels, including composting, access to local fresh foods, a mobile food cart at the high school, and diverse menu options such as vegetarian and Halal meals. She also highlighted “grab and go” meals for students on shortened school days.
Participation in school meal programs has increased, Groudine said, with nearly 40 percent of students now receiving meals daily. However, she noted it is “unclear” how the program will operate next year due to federal funding cuts and uncertainty over whether the state will implement a free lunch program.
She reported the district recently lost $35,000 after the U.S. Department of Agriculture cut a $660 million national grant program that allowed schools to purchase local farm products. Bethlehem had used the funds to buy beef, cheese and maple syrup for its menus.
Additional cost pressures include rising food prices, inflation, increased salary and benefit costs, the potential impact of proposed tariffs, and the expiration of pandemic-related federal funding. Groudine also said it is difficult to predict whether the federal government will make further changes to school meal programs.
To offset costs, she is considering a lunch price increase in January but emphasized affordability remains a priority. Other potential cost-saving measures include reducing menu options, staffing adjustments, and increasing à la carte sales.
Of the district’s total enrollment of 4,077 students, 651 — or 15.97 percent — receive free meals, while another 22 — or 0.53 percent — receive reduced-price meals. District spokesperson JoEllen Gardner encouraged families to apply for these benefits, which can be done year-round online through LINQ Connect or by contacting Susan Frank at Capital Region BOCES Food Service Program at [email protected] or 518-464-5133.
Final budget, vote and trustee elections ahead
The board will reconvene Wednesday, April 2, to finalize the budget and determine additional ballot propositions. As of now, McPhillips expects voters to consider the district’s operating budget, a school bus proposition not to exceed $814,770 to purchase six buses, and a proposition to establish a $30 million capital reserve fund to address future needs and reduce debt and interest costs.
A public hearing on the proposed budget will be held Wednesday, May 7.
Voters will also elect two members to the Board of Education. Seats currently held by John Walston and Robert Tietjen will be on the ballot. Both incumbents have announced their intent to run for re-election to new three-year terms, which would expire on June 30, 2028.
Nominating petitions, which became available in February, must be submitted to the district by 5 p.m. Monday, April 21. Gardner said no other petitions have been received so far, but added that it is still early in the process.
